Here’s What Drove Vision Capital Fund to Pick Cloudflare (NET)

Group 1 - Vision Capital Fund reported a net return of +15.6% year-to-date for Q3 2025, outperforming the S&P 500's +14.8% for the same period [1] - Since its inception on October 1, 2024, the fund has achieved a cumulative return of +27.8% net, compared to +17.6% for the S&P 500 [1] Group 2 - Cloudflare, Inc. (NYSE:NET) was highlighted in Vision Capital Fund's Q3 2025 investor letter, with a one-month return of -12.38% and a 52-week gain of 85.13% [2] - As of December 08, 2025, Cloudflare's stock closed at $205.86 per share, with a market capitalization of $72.109 billion [2] - Vision Capital Fund initiated a new position in Cloudflare in September 2025, recognizing it as a dominant provider of connectivity cloud services and security software as a service (SaaS) [3] Group 3 - In Q3 2025, Cloudflare reported revenue of $562 million, reflecting a year-over-year increase of 30.7% [4] - Despite Cloudflare's potential, the fund noted that certain AI stocks may offer greater upside potential and less downside risk [4] - At the end of Q3 2025, 63 hedge fund portfolios held Cloudflare, an increase from 59 in the previous quarter [4]